Sharekhan has given Buy recommendation for Larsen and Toubro with a target price of Rs. 1900 in its research report issued on Jul 26, 2021
Sharekhan’s research report on Larsen and Toubro
Revenues were marginally lower than expected, while OPM remained broadly in-line for Q1FY20222. Order prospects and order backlog stayed healthy. Management retained FY2022 guidance for order intake, revenues, OPM and working capital levels. Cash reserve remained robust. Divestment of power assets, stake in road entity and restructuring of Hyderabad Metro project is expected to conclude in the current year.
We maintain a Buy on Larsen and Toubro (L&T) with a revised PT of Rs. 1900, considering inexpensive valuation for core business and positive business dynamics, barring near-term COVID-led concerns.